| Affiliation: | 1.Department of Economics,Fiji National University,Nasinu,Fiji;2.Ministry of Finance and Economic Development,Port Louis,Mauritius;3.Reserve Bank of Vanuatu,Port Vila,Vanuatu |
| Abstract: | The American financial crisis which began in the second half of 2007 ultimately deteriorated into a world economic downturn. Despite hopeful signs of recovery in early 2011, there was another setback in the second half of 2011, consequent to the euro zone debt crisis. These developments posed challenges of unprecedented nature to the small island developing states (SIDS). Being prone to shocks of all kinds, such as natural disasters and volatility in prices of fuel and food, SIDS have been struggling to keep their economies afloat with their limited range of fiscal and monetary policies, success of which depended on coordination between ministries of finance and central banks. This paper seeks to examine the subject with two case studies in two regions, the Indian Ocean and the Pacific. |
